Bessent Says Trump, Xi May Speak 'Very Soon' About Trade Agreement

'We will see what the consequences are' after a call, Bessent said.
Published: 6/1/2025, 5:25:49 PM EDT
U.S. Treasury Secretary Scott Bessent said U.S. President Donald Trump and Chinese Communist Party leader Xi Jinping may soon have a call regarding the Chinese regime's tariff agreement violations that Trump revealed on May 30.
"We will see what the consequences are," Bessent said on CBS's "Face the Nation" on June 1. "I believe we'll see something very soon."

White House National Economic Council Director Kevin Hassett told ABC News' "This Week" that he expects the exchange to take place sometime this week.

"President Trump, we expect, is going to have a wonderful conversation about the trade negotiations this week with President Xi. That's our expectation,” he said, adding that Trump’s team, led by U.S. Trade Representative Jamieson Greer and Xi’s team in China, are “talking every day trying to move the ball forward on this matter."

He said an exact date has yet to be decided.

The remarks came after Bessent said last week that trade talks had been "a bit stalled" between the United States and China since the May 12 Geneva agreement brokered by Bessent and U.S. Trade Representative Jamieson Greer. This agreement paused and rolled back tariffs and retaliatory trade actions taken since April. On May 30, Greer said the violations that Trump spoke of had to do with China's critical minerals export restrictions, which were meant to be rolled back beginning on May 14.

"What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe," Bessent said on June 1. "That is not what a reliable partner does."

Automotive trade associations have written to U.S. officials, warning of an impending rare earth magnet shortage.

"Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras," the Alliance for Automotive Innovation said in a letter to the Trump administration.

"In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines."

The letter was dated May 9, and auto executives confirmed on May 30 that the situation is yet to be resolved. China controls some 90 percent of mineral processing capability, and on April 7 announced restrictions on seven minerals and magnets used in automotive, defense, and energy sectors.
On May 14, when the retaliatory trade actions were set to be rolled back in line with the Geneva agreement, the Chinese regime announced again that it would be strengthening critical mineral export restrictions.

Bessent and other Trump administration officials have signaled that resolving the tariff violation will require talks at the head-of-state level, expressing confidence that Trump and Xi will have a call but declining to answer whether Cabinet-level officials have information about the schedule.

U.S. Secretary of Commerce Howard Lutnick said in a Fox News interview on June 1 that China has been "slow-rolling" trade talks, and that he believed that a call between Trump and Xi would resolve matters.

"I am confident that when President Trump and Party Chairman Xi have a call, that this will be ironed out,” Bessent said.

"The fact that they are withholding some of the products that they agreed to release during our agreement—maybe it's a glitch in the Chinese system, maybe it's intentional, we'll see after the president speaks to [Xi]."

Bessent denied that there was an intentional escalation with China, referring to the Chinese regime's allegations that the United States had sought to "vilify" China in recent remarks.

U.S. Defense Secretary Pete Hegseth on May 31 delivered a speech to Indo-Pacific nations at the annual Shangri-La Dialogue, a key defense summit for the region, during which he called out the Chinese regime's aggressive activity, including cyberattacks on other nations and war games around Taiwan.

Bessent said the United States sought the "de-risking" of global supply chains, not decoupling from China specifically.

"I think what Secretary Hegseth did was remind everyone [that] during COVID, China was an unreliable partner, and what we are trying to do is to de-risk," he said, referring to the supply chain disruptions during the COVID-19 pandemic.

"As we saw during COVID, whether it was with semiconductors, medicines, other products—we're in the process of de-risking."

Reuters contributed to this report.